Deadline that protects you from tax scrutiny: CA explains the rules

Returns filed before March 2019 are beyond the reach of fresh scrutiny, says Himank Singla

The Income Tax Department cannot issue scrutiny or reassessment notices for taxes filed before March 31, 2019, offering people a measure of certainty about their financial management.

 

Chartered accountant Himank Singla highlighted the rules in a recent post on X, pointing out that “all income tax matters (if already not under scrutiny) up to 31 March 2019 are now out of the purview of tax officers.”

 

Regular assessments: three-month window

 

Typically, if you have filed your income tax return (ITR), the department has just three months from the end of that financial year to issue a notice.

 

 

For example, if you file your return for FY25, the last date by which the department can issue a scrutiny notice is June 30, 2025.

 

This timeline ensures that routine cases are not kept pending indefinitely.

 

Reassessment cases: three to five years

 

The department can also re-examine cases if it finds that some income has escaped assessment. Here too, there are strict time limits:

 

If the income not assessed is below Rs 50 lakh, notice can be issued within three years and three months from the end of the relevant assessment year. For instance, for FY21, notices cannot be issued after June 30, 2025.

 

If the escaped income is Rs 50 lakh or more, the window for issuing a notice is five years and three months. That means for FY19, notices cannot be served after June 30, 2025.

 

Why this matters

 

These deadlines act as a safeguard for taxpayers, preventing the uncertainty of indefinite scrutiny. If your returns are not already under review, the tax department cannot go back beyond March 2019 ,31.

 

For individuals, this means peace of mind: old filings up to that date are safe from fresh notices. For the department, it keeps focus on recent cases where action is still possible.

 

Singla said taxpayers should be “aware of the time limits within which notices can be issued,” since they provide a clear boundary on how long the taxman can question past filings.